34 Derivative financial instruments

EUR million Nominal value Fair value,
positive
Fair value,
negative
Fair value,
net
31 Dec 2015



Foreign exchange derivatives 60.2 2.1 -0.3 1.7
Interest rate derivatives 40.0
-1.0 -1.0
Commodity derivatives 13.2 0.2 -4.1 -3.9

113.5 2.2 -5.4 -3.2





EUR million Nominal value Fair value,
positive
Fair value,
negative
Fair value,
net
31 Dec 2015



Foreign exchange derivatives 77.2 7.0 -1.3 5.7
Interest rate derivatives 40.0
-1.0 -1.0
Commodity derivatives 2.7 0.1 -1.8 -1.8

119.8 7.1 -4.2 2.9





The fair value of derivative instruments is the gain or loss arising from the settlement of the contract at the market price prevailing on the reporting date.

Hedge accounting has not been applied to all derivative instruments. Nevertheless, these derivative instruments have been utilised for hedging purposes. The derivatives are used in order to reduce business risks, interest rate risks and to hedge balance-sheet items denominated in foreign currencies. Changes in the fair value of non-hedge accounted derivatives are recognised through profit or loss in accordance with their nature either in financial items or as other operating income and expenses.

Financial derivatives are subject to master netting- or similar arrangements which are enforceable in some circumstances. According to these arrangements above mentioned derivative assets and derivative liabilities could be settled on a net basis. Netting arrangements are enforceable according to typical negligence events or other events of default as the general terms for derivative transactions applies. Items, to which settlement on a net basis could be applied under certain conditions, are recognised on gross basis in the statement of financial position. Gross figures would have been EUR 0.5 million (1.4) smaller than the figures presented in the table.